U.S. gasoline prices dropped by 13.78 cents in the last two weeks and current prices are the lowest this year.
In a Lundberg survey, it was revealed that the average price of gasoline in the United States dropped by 13.78 cents over the last two weeks and the current price is the lowest it has been this year. The current average price stands at a little over $3.38 per gallon.
The survey was conducted on 2,500 retail stations in the lower 48 states. The drop in prices has been the highest since November last year, revealed survey editor Trilby Lundberg.
"Weakened demand and the government shutdown continue to dampen the economic outlook and push oil prices lower," Jessica Brady, AAA spokeswoman, The Auto Club Group, said in a statement. "Gas prices would have dropped further had Tropical Storm Karen not caused oil platforms to make precautionary shutdowns in the Gulf. Now that Karen has passed, motorists will likely see pump prices drop further this week."
The drop in gasoline prices is because of the slash in crude oil prices. The low crude oil cost has allowed retailers to slash their gasoline prices too.
"But crude prices changed very little in this last two-week period," Lundberg said. "The margins for both refiners and retailers have both skinnied, so I doubt they'll be able to continue their price cutting."
Hence, drivers should make the most of these low prices till it lasts. According to Lundberg, there should be another very big crude oil price slash for retailers to continue offering low rate gasoline and she is not hopeful of that happening any time soon.
The survey also reported that currently St. Louis, Missouri has the lowest gasoline price in the country - $3.01 per gallon and residents of San Francisco pay the highest for gasoline - $3.88 per gallon.
